![]() What is Majestic's lease liability at the beginning of the lease (after the first payment)?.Portions of the Equipment Leasing's lease amortization schedule appear below: Jan. Title does not transfer to the lessee and there is no purchase option or guarantee of a residual value by Majestic. On January 1, 2018, Majestic Mantles leased a lathe from Equipment Leasing under a finance lease. (Note: You may wish to compare your solution to this exercise with that of E 14-18 which deals with a parallel situation in which the packaging machine was acquired with an installment note.) Prepare the appropriate entries related to the lease on December 31, 2020 31,2020 31, 2020.Prepare the appropriate entries related to the lease on December 31, 2018. ![]() Prepare an amortization schedule for the four-year term of the lease.Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2018. ![]() Barton and Barton's implicit interest rate was 10 % 10 \% 10%. The useful life of the machine was expected to be four years with no residual value. The lease agreement for the $ 4 \$ 4 $4 million (fair value and present value of the lease payments) machine specified four equal payments at the end of each year. Barton and Barton completed construction of the machine on January 1, 2018. leased a packaging machine from Barton and Barton Corporation. ![]()
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